Re: RE: Peugeot 2nd worse in U.K's JD Power Survey

From: Cameron Mac Millan (casm@earthlink.net)
Date: Sun 16 Apr 2000 - 12:02:54 UTC

  • Next message: Hugo Steincamp: "Re: RE: Peugeot 2nd worse in U.K's JD Power Survey"

    >>The survey, in my view, isn't the issue (although these things do
    >>have a bearing on auto sales),
    >
    >Agreed, but statistics don't always tell the truth. Here's why...
    >
    >>but what it captures is: Peugeot, in
    >>terms of fit and finish, electrical systems, and training dealers to
    >>fix the cars (or perhaps in making cars that aren't too complicated
    >>for dealers to fix) has a considerable ways to go.
    >
    >I disagree. I haven't seen the survey yet (the local newsstand is
    >behind in ordering Top Gear again), but it looks as though somewhere in

    >the region of 115 owners of each model responded. What if a large
    >proportion of the 115 who responded were only representative of the
    >people experiencing problems, and their anger and frustration is what
    >motivated them to reply in the first place? Naturally, you'll end up
    >with a slanted view of things.
    >
    >>Survey results
    >>such as this, when combined with the actual car owners experiences,
    >>affect sales.
    >
    >True, but more so in the US market. The JD Power survey is not taken
    as
    >seriously in the UK as in the US.
    >
    >>A car owner is less likely to buy the same make again
    >>if the dealers suck and the car is unreliable and poorly put
    >>together.
    >
    >Correct, but I'm reminded of something my father said a few years ago:
    >"Nobody builds a bad car anymore." Which is true: there are no *bad*
    >cars, but there are *mediocre* ones. The comment was in relation to a
    >pre-VW Skoda Rapid I had just bought. It wasn't a great car by any
    >means, but it started, stopped, and steered. Nothing ever really went
    >wrong, but it was definitely an Eastern Bloc car - spartan would be the

    >best way to describe it. Somebody ahead of me bought it new, and,
    >ultimately, it filtered down into my hands.
    >
    >>New car buyers will be steered away from the that car
    >>because it does not fair well in owner surveys, be it JD Powers or
    >>Consumers Digest or the European equivalents.
    >
    >The Vauxhall (not Opel) Vectra is proof of how almost the exact
    opposite
    >holds true in this case. It's a dull car with more than its share of
    >problems. The dealers are notoriously rude and inept, yet people still

    >buy this oh-so-average crudwagon in droves (although, admittedly, it is

    >a very popular fleet car, which accounts for much of its sales). By
    the
    >way: this car is now being built in the US as the Saturn LS. If you
    >know anyone intending to buy one, for their sake pray that the
    >mechanical problems aren't a result of poor engineering.
    >
    >>That's how the market
    >>operates. That's why makers like Peugeot, Renault, Yugo, Alfa and
    >>Fiat disappeared from the US market,
    >
    >Well, yes, but in fairness to Yugo, they disappeared from *every*
    market
    >in about 1992 - they were quite literally bombed out of existence. A
    >pity, as the Sana was a halfway decent car, and their upcoming sports
    >car looked interesting.
    >
    >Similarly, in fairness to the other three, has anyone here ever looked
    >at the prevailing mentality of US drivers and mechanics? Drivers:
    'It's
    >a foreign car, so I never need to service it.' 'It's a cheap little
    >bitty car, so who cares if it blows up, it can't tow a boat.'
    >Mechanics: 'I can't pronounce it, so I'm scared to work on it.' 'I
    know
    >it's layout is exactly the same as every Honda/Buick on the road, but
    it
    >still scares me.'
    >
    >>GM hasn't had a top seller for
    >>more than a decade,
    >
    >Which would suggest to me that GM should go back to making cars that
    >people actually want to buy. Their current line-up ranges from the
    >bland to the SUV, with the only interesting car (Corvette) somewhat
    >shoved into a dark corner.
    >
    >>and the Japanese (Accord, Camry) are the best
    >>sellers in this country.
    >
    >Two reasons why these cars are the best-sellers here:
    >
    >1) Most people don't care about their cars. They want to get in, turn
    >the key, and go. The Japanese did a good job - for the most part - of
    >making this a realistic proposition long ago.
    >
    >2) As the best-sellers, they can be considered the lowest common
    >denominator for their class. People buy them because they themselves
    >are not capable of making an informed buying decision. I hate to admit

    >it, but this includes my mother, who has owned Hondas uninterrupted
    >since 1976. Never mind that her Civics and Preludes have not been the
    >paragons of reliability that everyone believes them to be: she has
    >convinced herself that they are good cars.
    >
    >>It explains why Fiat dropped from having 65%
    >>of the new car market in Italy to less than 35% of it today.
    >
    >There were other reasons behind this, mostly legal and involving
    Italian
    >tax reliefs. Also, bear in mind that Fiat is up for sale at the
    moment,
    >and may wind up in the pockets of Mitsubishi, with whom they've had a
    >partnership for a couple of years.
    >
    >>It seems
    >>to me, then, that Europe maybe a stronghold for Peugeot now, but it
    >>will increasingly find itself under threat in its home turf because
    >>of the increasing availability of Japanese cars (tariff and quota
    >>reductions) and its inability to compete on the quality and
    >>reliability issue.
    >
    >All I can say is that this is why surveys are dangerous: they create
    the
    >perception that one thing is better than a number based solely on
    >emotional ('Were you happy with the service?') responses to questions
    >asked of non-technical people whose numbers are so small that they
    >cannot be considered representative of the larger group. Also, what
    >checks and balances are in place to ensure that the submissions
    received
    >are in fact valid?
    >
    >>If I was Folz, I'd be extremely worried about
    >>Toyota building the Yaris in France. The Japanese are gearing up for
    >>a major penetration of the European market.
    >
    >I agree completely. And while I would love to be able to say that the
    >European carmakers would be able to survive this, they won't. But it
    >won't be due to a survey: it'll be due to lower prices. If I can buy a

    >Civic for two grand less than a 206 and get essentially the same car,
    >why pay more? Never mind that smaller Japanese cars in general at home

    >are notorious for cracking cylinder heads or blowing gaskets at around
    >the 150,000-mile mark. It's also worth noting that tastes in cars
    >differ greatly between Europe and the US. You can't sell a Buick any
    >more successfully in Europe than you can a Renault in the States.
    >
    >- Cameron.
    >



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